Analyze the accounts receivable and the allowance

Assignment #4 1 FI 105 | Session 4 Assignment #4 1. Using the following information analyze the accounts receivable and the allowance for doubtful accounts for this company: 2011 2010 Sales $6,700 $7,500 Accounts Receivable, Net 202 320 Allowance for doubtful accounts 3 12 2. The following calculations have been made for Coos Company: Growth Rate Net Sales 10.5% Total Accounts Receivable 21.3% Allowance for doubtful accounts 2.6% Current Year Prior Year Allowance for doubtful accounts as a percentage of total accounts receivable 3.8% 5.4% a. Analyze the accounts receivable and allowance for doubtful accounts. b. What other information would be useful for the analysis completed in part a? 3. Using the following excerpts from the most recent annual report of Health Supplements, Inc., a leading manufacturer of nutritional supplements, analyze the accounts receivable and allowance for doubtful accounts. Be sure to show all calculations and write a thorough interpretation of those calculations. Assignment #4 2 Concentrations of Credit Risk Credit risk with respect to receivables is concentrated with our three largest customers, whose receivable balances collectively represented 75% of gross accounts receivable at June 30, 2011 and 79% at June 30, 2010. Concentrations of credit risk related to the remaining accounts receivable balances are limited due to the number of customers comprising our remaining customer base. Health Supplements, Inc. Valuation and Qualifying Accounts For the Years Ended June 30, 2011, 2010 and 2009 a) Explain how inventory is valued if the FIFO method is used. b) Explain how inventory is valued if the LIFO method is used. c) Why would a manager choose the FIFO method during an inflationary period? d) Why would a manager choose the LIFO method during an inflationary period? 4. If a firm chooses to use the FIFO method of inventory valuation instead of the LIFO Assignment #4 3 method, explain the impact of deflation on the amounts shown on the balance sheet for inventory and on the income statement for cost of goods sold. 5. Using the following information calculate the ending inventory balance and the cost of goods sold expense that would be reported at the end of the year if the following inventory valuation methods are used: a. FIFO b. LIFO c. Average cost Units Purchase Price Beginning inventory 8 $5 Purchase #1 10 $6 Purchase #2 14 $7 Purchase #3 12 $6 Sales 40 6. Using the following information calculate the ending inventory balance and the cost of goods sold expense that would be reported at the end of the year if the following inventory valuation methods are used: a. FIFO b. LIFO c. Average cost Units Purchase Price Beginning inventory 20 $12 Purchase #1 100 $11 Purchase #2 85 $10 Purchase #3 90 $9 Sales 235

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

101papers.com is always working towards customer satisfaction. Our professional academic writers always aim at producing comprehensive papers that possess quality and originality at pocket-friendly prices. Students are assured that all their private information is safe with us.

Money-Back Guarantee

101papers.com provides a system where students can request for money-back in case they cancel the order or in the rare instances of dissatisfaction. The refund policy adheres to the company’s term and conditions on money-back.

Read more

Zero-Plagiarism Guarantee

While providing the best professional essay writing services, we guarantee all our students of plagiarism-free papers. All papers produced by our professional academic writers are checked against all web resources and previously completed papers to avoid plagiarism.

Read more

Free Revision Policy

In our urge to provide the best professional essay writing services, we guarantee students of free revision policy. The free revision policy is a courtesy service where students can request for unlimited for their completed papers. We always aim at achieving 100% customer satisfaction rates. The free revision policy is one among many of our major advantages.

Read more

Privacy Policy

At 101papers.com, every student is entitled to total security. Our professional academic writers are always committed to protecting all private information of our customers. We do not share any personal information with third parties. Additionally, we provide safe systems for all online transactions.

Read more

Fair-Cooperation Guarantee

Working with us is the greatest step towards achieving all your academic goals. We always deliver the best professional essay writing services as promised. We, therefore, expect all students to work cooperatively with us, as we work towards achieving our goal, your satisfaction. This way, all services will be delivered accurately and on time.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency